What type of budget focuses on how much is spent and for what purpose rather than the activity affected?

The choice of a line-item budget is appropriate as it emphasizes a detailed accounting of how much money is spent and allocates funds based on specific categories or items. In a line-item budget, expenditures are tracked and reported based on predetermined line items, such as salaries, supplies, or services, making it particularly effective for financial accountability. This structure enables clear visibility into each area of spending, allowing stakeholders to see exactly where resources are being allocated.

In contrast, other budget types focus on different aspects of financial planning and management. Performance-based budgets are designed to measure the outcomes or effectiveness of programs in relation to the funds spent, focusing on results rather than just expenditures. Zero-based budgets require every expense to be justified from scratch each budgeting cycle, emphasizing the necessity of each item rather than straightforward tracking of spending. Output budgets relate closely to the amount of service delivered or outcomes achieved, concentrating on the productivity of spending rather than merely cataloging expenses. Each of these budget types serves different management and reporting purposes but does not highlight the specifics of expenditures to the same degree as a line-item budget.